"VolUmE Is laGgiNg" π€
Candle spreads the secret to unlocking VPA.ποΈ
How to turn volume from lagging to real-time actionable ideas.
Let's talk about it...π§΅
1/16
Candle spreads the secret to unlocking VPA.ποΈ
How to turn volume from lagging to real-time actionable ideas.
Let's talk about it...π§΅
1/16
For all the nerds, YES volume is lagging. Alongside just about every single indicator traders can use.
In fact, even LEVELS are lagging!!π³
Price pays, duh. But we can gain something very special from volume that the candlesticks do not reflect...
2/16
In fact, even LEVELS are lagging!!π³
Price pays, duh. But we can gain something very special from volume that the candlesticks do not reflect...
2/16
SENTIMENT.π‘
Volume measures activity.
Activity = Interest.
Activity in and of itself is useless. This is to say, don't blindly follow volume spikes. Introduce key levels or whatever point of interest you use for your system, and we have something beautiful.
3/16
Volume measures activity.
Activity = Interest.
Activity in and of itself is useless. This is to say, don't blindly follow volume spikes. Introduce key levels or whatever point of interest you use for your system, and we have something beautiful.
3/16
As we proceed, pay attention to how I use levels and the 9/20 EMA to narrow down the information I am analyzing. This will be key. π
In the examples below, I will break down first a daily chart and then an intraday 2 min chart. Buckle up.
4/16
In the examples below, I will break down first a daily chart and then an intraday 2 min chart. Buckle up.
4/16
CONTINUATION: DAILY CHART
Good ole continuation. I think a common misconception about VPA is we buy AFTER we see big volume.β
If that were the case, we would all be unprofitable and have a horrible risk to reward system. We take advantage through continuation...
5/16
Good ole continuation. I think a common misconception about VPA is we buy AFTER we see big volume.β
If that were the case, we would all be unprofitable and have a horrible risk to reward system. We take advantage through continuation...
5/16
Looking at this daily chart and these patterns, we see one of the easiest sequences to understand.π
High volume move and low volume pullback. Our job is to simply time the bottom of the bull flag. This is the EXACT reason I brought levels into the equation.
6/16
High volume move and low volume pullback. Our job is to simply time the bottom of the bull flag. This is the EXACT reason I brought levels into the equation.
6/16
SURE, I missed the earnings reaction, but volume was not lagging when we pulled back right into old resistance + 9 EMA.
This was an actionable idea, and we used volume to confirm nothing funky was occurring in the bull flag.π₯Έ
7/16
This was an actionable idea, and we used volume to confirm nothing funky was occurring in the bull flag.π₯Έ
7/16
CONTINUATION: 2 MIN CHART
Funny enough, this exact stuff is occurring in every timeframe. Regarding intraday trading, VPA helps me remove the noisy candle sticks.π€’
Reading the volume below is all I need to determine whether the uptrend is intact.
8/16
Funny enough, this exact stuff is occurring in every timeframe. Regarding intraday trading, VPA helps me remove the noisy candle sticks.π€’
Reading the volume below is all I need to determine whether the uptrend is intact.
8/16
Using the 9EMA in this example shows how just like a daily chart, we can anticipate the end of a low volume pullback using a point of interest.π―
This gives us an actionable process because we get the best RR possible.
9/16
This gives us an actionable process because we get the best RR possible.
9/16
Anticipatory entries are how we can time when the next round of volume will come in.
1. High volume move
2. Low volume pull
3. Point of interest
4. Repeatπ
10/16
1. High volume move
2. Low volume pull
3. Point of interest
4. Repeatπ
10/16
Stopping volume will be the gold of this thread. To reiterate, the common misconception regarding volume is we chase big green candles. BUT what happens when the candle spread is small.π
What exactly are we missing if the stock hasn't actually moved...
11/16
What exactly are we missing if the stock hasn't actually moved...
11/16
STOPPING VOLUME: DAILY CHART
Stopping volume is how we capture entire trends and bottom tick charts. Giving us some of the best RR in the game.π°
I love the example below because it highlights two of my favorite kinds of stopping volume...
12/16
Stopping volume is how we capture entire trends and bottom tick charts. Giving us some of the best RR in the game.π°
I love the example below because it highlights two of my favorite kinds of stopping volume...
12/16
The first of which is a high volume inside bar after a prolonged downtrend.
The second type is after a level hold or preferably sweep, as we see here.
When we see volume like this, oftentimes, there is very little to think about.βοΈ
13/16
The second type is after a level hold or preferably sweep, as we see here.
When we see volume like this, oftentimes, there is very little to think about.βοΈ
13/16
I want to take the time to reiterate that anything after stopping volume and a reversal begins is NOISE.
We can move up on thin air in the volume bars for all I care because institutions that accumulated already did so.π§
You need to understand volume tells reversals.
14/16
We can move up on thin air in the volume bars for all I care because institutions that accumulated already did so.π§
You need to understand volume tells reversals.
14/16
STOPPING VOLUME: 2 MIN CHART
CANDLE SPREADS!
I love stopping volume because we are BOTTOM TICKING these stocks. I'm never worried about RR parameters. This is when you will truly unlock VPA.
When you understand effort vs. result, that does not make sense.β
15/16
CANDLE SPREADS!
I love stopping volume because we are BOTTOM TICKING these stocks. I'm never worried about RR parameters. This is when you will truly unlock VPA.
When you understand effort vs. result, that does not make sense.β
15/16
Volume is lagging, sure, but as soon as the highlighted candle closes and I see it reflected, I know the bottom is in.
That's really what's important here and what gives me an actionable edge in the markets.π§ͺ
16/16
That's really what's important here and what gives me an actionable edge in the markets.π§ͺ
16/16
I hope you were paying attention to the candle structure to the left. Volume anomaly sequences. We'll talk about that.π
Please drop a like and retweet my first π§΅back!
For more EDU, follow these boys: @ohiain @DBookTrading @notmrmanziel @PressTradez @Braczyy
Please drop a like and retweet my first π§΅back!
For more EDU, follow these boys: @ohiain @DBookTrading @notmrmanziel @PressTradez @Braczyy
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